Tether exits EU as MiCA rules take effect
- Tether's USDT (CRYPTO:USDT) has been removed from MiCA-regulated European exchanges after the company chose not to seek authorisation under the EU's new rules.
- Circle's USDC (CRYPTO:USDC) and EURC have become the main MiCA-compliant stablecoins available on licensed trading platforms across the European Union.
- Tether said it will continue supporting the European digital asset market through technology partnerships rather than issuing a MiCA-compliant stablecoin.
Tether's USDT (CRYPTO:USDT) has been removed from regulated European cryptocurrency exchanges after the European Union's Markets in Crypto-Assets framework required licensed platforms to support only authorised stablecoins.
The change follows Tether's decision not to apply for authorisation as an electronic money token issuer, while exchanges including Coinbase, Kraken and Crypto.com gradually delisted USDT for European users before the July 1 deadline.
Tether Chief Executive Officer Paolo Ardoino said MiCA's reserve requirements create systemic risk because issuers must hold at least 60% of reserves in European bank deposits.
Circle secured an Electronic Money Institution licence in France, allowing USDC (CRYPTO:USDC) and EURC to operate across all 27 European Union member states, while Tether said it will continue supporting partners including StablR and Oobit through its Hadron tokenisation platform.
The transition has prompted liquidity providers to shift trading activity from USDT to USDC on regulated exchanges, while Tether remains active in global markets outside the European Union.
Before the July 1 deadline, only 244 MiCA licences had been issued across the European Union, with some cryptocurrency companies instead expanding from jurisdictions including Dubai rather than seeking authorisation.
The changing regulatory landscape has also encouraged European financial institutions to develop new digital payment products, including the proposed Qivalis euro stablecoin backed by a consortium of 37 banks.
